Portfolio Decumulation Simulator (Variable SWR)
Launch Live CalculatorThe Purpose (Why?)
To simulate advanced variable withdrawal strategies like Variable Withdrawal Strategies (VWS). It allows testing of "guardrails" (caps and floors) to see how they stabilize income and preserve capital. (Note: Simulations use inflation-adjusted "Real Dollars")
How it Works
Configure the Current Portfolio Value and Base SWR. Then tune the strategy parameters: "SWR Adjustment Factor" (0 for Fixed, near 0 for % of Portfolio, ~50 for Variable/VWS), Change Caps (limits on income fluctuation), and Withdrawal Floor.
Foundational Research
Read the core research article to understand variable withdrawal strategies:
Input Specifications
| PARAMETER | DETAILS |
|---|---|
| Core Parameters | |
| Current Portfolio Value ($) | Starting portfolio value. EXAMPLE: $1,000,000 |
| Target SWR (%) | Base Safe Withdrawal Rate percentage. EXAMPLE: 5.0% |
| Duration (Years) | Length of the retirement simulation. EXAMPLE: 30 |
| Spending Strategy Limits | |
| SWR Adjustment Factor (%) | Adjustment factor:
EXAMPLE: 50 (for VWS) |
| Max Annual Increase (%) | Maximum annual increase in withdrawal amount. EXAMPLE: 5.0% |
| Max Annual Decrease (%) | Maximum annual decrease in withdrawal amount. EXAMPLE: 2.5% |
| Withdrawal Floor (%) | Minimum withdrawal amount as percentage of initial withdrawal. EXAMPLE: 90.0% |
| Market & Costs | |
| Real Return (%) | Expected average annual real return. EXAMPLE: 5.8% |
| Standard Deviation (%) | Annual return standard deviation. EXAMPLE: 6.1% |
| Management Fee (%) | Fixed annual management or portfolio expense. EXAMPLE: 0.0% |
Example Visualizations
Example Output
View a high-fidelity, interactive sample report generated by this simulation engine.
View Sample Simulation ResultFrequently Asked Questions
Unlike a fixed withdrawal strategy where you take the exact same inflation-adjusted amount every year, VWS dynamically adjusts your spending based on portfolio performance. The "SWR Adjustment Factor" allows you to increase withdrawals during bull markets and reduce them during bear markets, preserving capital. If you want to see a standard fixed withdrawal projection, use the Portfolio Decumulation Simulator (Fixed SWR).
All calculations use "Real Dollars" (inflation-adjusted returns). This simplifies the simulation by removing the need to guess future inflation rates. A 0% real return means your investments exactly kept pace with inflation, preserving your purchasing power.